before they occur and that will truly have accountants taking documents and reviewing them. that happens on the operations side of the shop. then we have detective controls in the office where knowing it would not be cost-effective for the city to give us enough accountants to have every transaction posted reviewed by a live human being, we sample the pre approval at have the auditing function in place, especially on the financial audit portion to detect later. and all up in case after something has been detected, was this appropriately that? probably more so than cost savings, a financial audit has that in mind. it is the balance to our pre approvals as opposed to just maintaining a controlled environment within the city. supervisor campos: please

continue. >> i think it might also answer some of your questions about whether we go through this list of technical projects, he will get a better sense of things we do and recognize a lot of them are not just analyses that have the potential to sit on the shelf. all lot of our engagements are working with department thought implementations may have committed to making the changes necessary to do that. i will go through these relatively quickly and you may feel free to ask me to questions at the end. we collect a fair amount of performance information from city departments. we're trying to share that information better with the leadership of the city and the public. we have a number of reports we issue, including some might have seen. we issue a buy monthly government broader that profiles the city's performance relative to measures of general interest. as a follow-up to the better

streets plan, we had some tools for departments to help them make decisions about what streetscape decides they should use its air considering greener alternatives streetscape design set create a pedestrian for like, more beautiful environment, we helped implement a cost of -- we help with the cost of the building those designs. we do work with larger departments, work with dph, a recent project was helping them streamline their medical procurement process. we're working with them what i.t. solution that will help them get better prices. we have been caught -- we have been involved with an ongoing conversation with various agencies around how to get the biggest bang for the buck out of our engagement with community- based organizations that provide resources to the community on behalf of the city. a few more projects in progress

this year -- in june of 2010, the city passed proposition 8 which required moving to budgeting and developing a five- year plan and we're providing a lot of heavy lifting to get that plan together which is due to the board of supervisors on july 1st. we are working on a number of efforts to improve the contract in process. we're working with the main city agencies involved with that. every two years, the city conducts a survey of its residents. that is addressing one of the requirements of the charter. we will be reporting on that in june. as you know, the comptroller's office has been working with an eta on the trend the effectiveness process.

-- working with the mta the transit effect of this process. a number of other things you can see on the slides, but i know we are under a time constraint, so we're happy to answer any questions you have. supervisor farrell: but in terms of the nonprofit monitoring and capacity building, does that correspond to the hsa line item here or is this the broader tracking system we have in the place now? >> good morning. another deputy in the city performance group and i direct the health and human services portfolio including the non- profit program.

that particular project, it turned out a couple of months ago that hsa no longer needs that analysis and have moved forward and adopt a contract management system that is actually a great outcome. we thought we were going to need some analysis around that, but we are not going forward with that project after all. while it was related to our on going profit monitoring and understanding performance, it was not otherwise related to that. we have a very robust program working with not profits, improving accountability, setting financial standards, building their capacity, and helping the city have consistency and better information sharing with not profit performance. supervisor campos: i do want to give kudos to the comptroller's office.

i know we have been working to make sure we bring in that level of accountability and assistance with the nonprofits. the road -- the most recent example being pried -- being pride. we asked for a somewhat limited management government's review which highlighted some issues that needed to be addressed and was very useful. not just useful in pointing out some of the issues that need to be addressed but providing the assistance. the more we can do that, that's something that think this committee can help play a role in helping to identify those kinds of agencies where that help is needed. what i would say might general reaction to this work, i think this is some of the most important work that goes on in this city. because insurers we fulfill our

mandate of serving the public and the charter amendment that was passed makes it clear that one of the main objectives is to report on the level of effectiveness of public services and actually create benchmarks for how those services are provided. what i am trying to understand is maybe if we can create a mechanism that further insurers the very good work you do is, the usefulness is maximized. my experience is at times, depending on which agency were dealing with and depending on who was involved, you may have an agency that fully implements or even goes beyond what is identified in the report.

but there may be some not doing everything we want them to do. if there is a way we can come back and monitor where an agency's response or implementation and recommendations are with respect to the studies and reviews that you have done, i think that would be a good way of ensuring accountability. i am interested in figuring out a process by which you could report to us where the implementation of these recommendations is with respect -- you talked about 37 studies at some point. where are we? you don't have the ability to force an agency to do something. your role under the charter is to identify what is happening and report on what is happening. i think that is where this

committee can play a role in at least airing out what is going on are not going on so that the public knows that. i would like to maybe work with the controller's office to figure out how that looks on a periodic basis. you can report on a number of reports to see where that implementation is as a way of making sure we maximize the use of the work you have done. supervisor chiu: i have a specific question on exactly where we are on the mta. what i continue to hear is there is so much of the tdp that has not been implemented. maybe for the public, just a 32nd on what the tep is.

>> that was a joint project initiated with the mta problem about four years ago. it was the first comprehensive review of the punctuality of mass transit in san francisco since the 1970's, a line by line review, ways to speed the system, a comprehensive look at the transit side of the mta. the initial report was completed a couple of years ago. you will recall the board of supervisors heard it at that time and adopted many of the key findings. at that point, it moved into implementation, having adopted the concept. we have just completed the implementation plan which is in final draft form and pending review at the mta. i believe the board c operations and services has actually called for and is hearing an update on

but an implementation plan for early april. the next steps from there are frankly going to be -- is sequa. a lot of the reports here are on the main routes that carry the majority of passengers. many of them have been implemented, but the largest ones are capital intensive and require environmental review. we have been working with the mta and urges beginning this process of getting out the bid for the environmental review process. that will take some time. the hope is that, in parallel, with the bar mental review and the initial project as i happening in parallel -- with the environmental review and the initial project as -- is happening in parallel and you can move in conjunction.

that's a quick wrap up of four things are at. supervisor chiu: thank you. i know it has been a number of years and will probably be a number of more years but i know you have the support of the folks here. supervisor campos: we also want to point out that some of the items that are here are also items that supervisor avalos' committee is working on and we want to make sure there is no duplication of effort. it is important to look at that. another big issue that i know many of us in the past have been interested in and was recently reported on, and as i am understand it, it is an issue that will be a general presentation at the budget and finance committee is the issue

of overtime. that it's appropriate for this committee not so much to focus on the amount of money being spent in overtime -- that's important to know and the budget and finance committee will look into that, but i would like for us to hear more about what are the efforts, the steps being taken to reduce overtime in the city. with something like that, how does this function address that issue? how do you monitor what is happening? how does that trickled down to what happens on the ground in some of these departments as you do these reports on an ongoing basis? >> we have a number of regular reports we issue on overtime use in city departments. we have a report we issued twice a year that has a high level review on how spending looks versus the prior years and we report that to the mayor and

board of supervisors both. the board has typically called, and i know this will likely be heard in two places which is ok. the board has heard that report and asked for an update from city department of what they're doing to control over time use. i think that tended helps the issue. we also have the biannual report and we also issue reports to the mayor, the board, and apartments on individual high earners of overtimes so the board put in place a cap saying they cannot earn this much overtime without seeking an exemption. this was passed by the board. we have a reporting on department's compliance with that effort which was intended to curb the high use of overtime by some individuals. often when we are touching a department with an audit or

review, we are commenting on and -- on a management practice and how affects over tight use. you will often hear of specific topics, suggestions of maximizing staffing levels or the like which would have impact on overtime. i know we will be during the fire department payroll audit in this committee. we just released a couple of weeks ago that there is some overtime conversation in that audit. supervisor campos: thank you very much. colleagues, any other questions? thank you very much again for the work you do. why don't we opened up to public comment? is there any member of the public would like to speak on this item? you each have three minutes. we have some people who have signed up -- any other member of

the public to like to speak on this item, please come forward. >> good morning. i worked at laguna honda for four years before resigning in protest. supervisor campos: is this on the first item? >> it absolutely is and i will be speaking on the gift item as well. i want to bring to your attention what they called the laguna honda transition assistance project. that was a $250,000 contract and a subcontractor was barbary coast consultants, a public- relations firm. one could ask what they're doing contracting public relations firm for eight safety net hospitals already has a public relations department. furthermore, if you look at the report that is posted on the

controllers website, it is 53 pages of mom and apple pie, not a single statistic, not a single word about the morale issues, the treatment of the dissidents at laguna honda. frankly, as a taxpayer for decades in san francisco, i object to the use of my money in this way. the managers should know what they're doing before they are

-- if what had gone on had occurred, they should bought it to other city departments. finally, i would like to draw your attention to the comments about charter section f, which is about the legal text and it clearly said the comptroller's office could hire external independent auditors which -- what should have been done with the laguna honda gift fund with potential conflicts of interest

in that case. to the extent the $11.5 million budgeted for 10-11 is not spent, some thought should be given by this committee and the board of supervisors into hiring some external auditors to complete other work. thank you. supervisor campos: thank you very much. next speaker. and the other member of the public who would like to speak on this item? seeing none, public comment is closed. seeing this point about figuring out a process by which we can monitor where the city agencies that have been the subject of an audit for technical successes -- for technical assistance and where they are -- any suggestions for how we can move forward with that?

>> i hear what you are asking for -- it is something more comprehensive in nature that speaks to universe of audits. why don't we work something up and we can talk to you, mr. chair, and provide a meaningful report to the committee going forward. >supervisor campos: that's great and maybe your office could come in and report on a more regular basis. the purpose of this is to let the public know what is happening with some of these reports with some of this very important work. it also allows an opportunity for the departments to let the public note those remedial steps that have been taken because what we want is to create some confidence that we are doing everything we are supposed to be giving and, where we are not,

make sure people know that as well. >> we welcome that and the interest of this committee holding hearings on audits is helpful because not surprisingly, there will be times when departments are not necessarily in the agreement with our recommendations. it will provide the committee to hear arguments and provide directions as the board of supervisors is helpful in the implementation as well. supervisor campos: my experiences these hearings are helpful to everyone involved. they're hopeful for the department and the public but it also sends a message that even though there may not be an individual hearing on a specific study or audit, that it will be genital -- general monitoring of every single study or review. to make sure there is as much implementation as possible and i think that's a good thing in terms of maintaining the accountability of every

department. colleagues, and the other questions? thank you very much and thank you again to the comptroller's office for their excellent work and presentation and thank you members of the public to a spoken on this. can we continue this item to the call of the chair? we could take that without objection. madame clerk, could please call item no. 2? >> item #2, hearing on the city's services auditor on the laguna honda gift fund. supervisor campos: thank you very much. before i turn this over to the comptroller's office, i just want to provide a little bit of context in terms of why this item is here. this is really about making sure when it comes to an audit or review of any agency, whether it is the health department or

any other department that there is a closing of the loop. we understand some work has already been done by the department, by the health commission, and we simply think with this kind of report, it's important to have a hearing at the board of supervisors level as we will with all of the audits that have been done. that's the purpose of this -- to make sure we hear from the comptroller's office. but we also hear from the department about what they have done and i know that we have the health commission here and we will hear from them and to give the public an opportunity to provide comment. the last point i would make before i turn it over is that there is litigation involved, so we have to be very careful to make sure we focus on the general findings of the audit. we are not going to delve into

any personnel issue or any issue that could in any way compromise the city's position as far as litigation. the focus is a general discussion about the findings. with that, i will turn over to the comptroller's office. >> good morning, tonia lediju, comptroller's office. government auditing standards require independence of audit staff and the audit organization and objectivity of auditors performing the work, competent staff, including continuing professional education and quality control procedures to provide reasonable assurance of the compliance of auditing standards.

this is also the basis for the transparency and accountability of the use of public services, resources key to the city's governing process. a compliance audit is an engagement designed to retain sufficient evidence to conclude whether a government agency complied to regulatory guidance. this includes the determination of whether the purpose of the program is administration and its outcome incurred propose costs and revenues received are in compliance with applicable laws, regulations, contracts or agreements. on august 90, the office of the comptroller requested an audit of the laguna honda fund. work commenced on september 1st and our report was issued to and half months later. the overall purpose of the audit was to determine whether laguna honda administered the gift fund in accordance with the san francisco of administrative code. the audit was from november 1st,

2004 through june 30th, 2010. to conduct the audit, the oddity review policies, procedures, administrative code, and donations and expenditures. with regards to the audit universe, the look good on the gift fund was made up of 20 to seven counts, including patient accounts costs for staff related accounts, at one earned interest holding account. the patient accounts vary in title and are maintained for various purposes, including patient outings, hospice care, activities, therapies and particular hospital words -- particular hospital wards. this included geriatric education administration accounts. the audit team used a sample selection process to test revenue, collected and expenditures made from these gift fund